took my money

[stephen2504]

I will try to explain this as best as i can.i purchased a h i p pack with the amount deferred for 9 month when the 9 month passed i could not afford to pay so i rang them and told them i could not pay and offered them a token payment of 5 pound per month till i sorted out my finance, i cancelled my original bank details which i used to set up the hip pack because they kept trying to take the money out so whenever they phoned me to chase the money i was making a 5 pound payment with my other bank details. today my bank phoned me and told me that 150 pound had been taken from my bank account by a hip company and left me overdrawn and no money to cover utility bills , so i phoned the company up and they told me yes we took the money because we are allowed to use any bank details we have on record for that client to get our money, my question is, are they allowed to do this.

[boxtops]

How did you cancel the original arrangement with the first bank, did you write to them and tell them not to accept any direct debit payment from the HIP company? If you didn't tell the bank not to accept a call for payment then they are entitled to give it to them - IMO.

[factor-fiction]

I think they are right. You signed up to a direct debit. There will be something you signed agreeing they could take the money

[bednobs]

how come they have your new bank details anyway?
Surely anyone with your bank details can't just take money out of your account? if so, i'm fooked because i write loads of cheques (which all have my bank details on) and anyone could just take money out?

[factor-fiction]

By the way, Iit's not clear to me which account they took the money from.
When you say you "cancelled the bank details" what exactly does that mean? Does the bank account still exist?

[boxtops]

I've read it that the payment was set up with Bank 1, but stephen is paying the £5 from Bank 2, and the HIP people have taken the money out of Bank 1. If you don't tell the bank to cancel a d/d (or do it yourself if you bank on-line) then it stays live on your account and can be drawn on at any time. IMO (and experience).

[stephen2504]

i had a bank account with lloyds tsb thats the account i used when i set up the hip pack but i closed that account and i am now with rbs which i was using when they phoned me chasing payments and i was making payments with my rbs visa debit card

[stephen2504]

according to the hip company they say they can take the money from any card details they have on record for that client

[factor-fiction]

Well I expect you'll have signed up to an agreement where they could take any amounts due to them

[ABerrant]

Should not the question title read "Took Their Money"...?

Is this the correct sequence of events?

You and they were parties to an agreement for a paid service.
They provided the service and allowed deferred payment.
You attempted to avoid full payment when due by changing bank accounts.
You unilaterally revised the payment terms.
After multiple failures to recoup the debt they finally used details supplied by you to take the overdue payment from the new account.

My question is, in regard of your actions listed above, are you allowed to do that?

[buildersmate]

My sentiments entirely

[factor-fiction]

I wish I could have put it as succinctly as ABerrant has.

[stephen2504]

i hope you lose your job and then try to pay your bills i lost mine tried to sell my house but then needed a 500 pound worthless hip pack to do this i think i got ripped off would be the answer

[Buenchico]

I'll try to avoid the squabbling and simply point out the difference between a 'direct debit' and a 'continuous authority'.

If you set up a direct debit to pay someone you are protected by the 'Direct Debit Guarantee'. The recipient of the money has to tell you in advance how much they'll be taking from your account. If they fail to do so, your bank is obliged to repay the money to you. You can also cancel the direct debit at any time. If your bank then pays out any money, under the direct debit, they're obliged to refund it to you.

However giving someone your debit card details is completely different. You're providing a 'continuous authority' which allows the recipient to take any money which is lawfully theirs. You can't cancel the arrangement. (Only the recipient can do that). Further, your bank is legally obliged to pay out any money demanded under that continuous authority.

So, regrettably, it's unlikely that there's anything you can do about the situation. You bank had no choice other than to hand over the money (even if you'd contacted therm beforehand and asked them not to do so) and the people you owed the money to had the legal right to take it.

Chris

[stephen2504]

thanks for all your input much appreciated